Amidst volatility in the cryptocurrency market, leading market figures discussed Bitcoin's rise above $70,000, reaching a level of $72,000, during a program hosted by renowned analyst Benjamin Cowen.
The broadcast featuring Benjamin Cowen, Guy, and Rob covered the reasons behind the sharp increase of the leading cryptocurrency, macroeconomic factors, and key forecasts regarding the future of the markets.
The analysts stated that the liquidation of short positions played a significant role in this surge. Although the rapid price increase was driven by the closing of short positions worth approximately $2.6 billion within a short period, it was noted that this alone would not be sufficient to initiate a sustained bull rally. Analyst Guy pointed out that the lower levels are likely already behind us, but for a sustained rally, active buying on the spot market is necessary, not just squeezing on the derivatives market. The net capital inflow of over half a billion dollars into spot Bitcoin ETFs was noted as a positive development, and in case of a potential correction, the $65,000–$67,000 range, which previously acted as resistance, could now become a strong level of support.
The statement by U.S. Treasury Secretary Scott Bessent that the U.S. will double bond buyback operations as part of a liquidity support program caused a strong market reaction. The analysts stated that although this move is not a direct expansion of monetary policy, it represents an important signal that instills confidence in the market. However, considering the massive U.S. national debt approaching $40 trillion and global geopolitical tensions, investors continued to gravitate towards hard assets to hedge against the devaluation of fiat currencies, which contributed to the simultaneous rise in the prices of both Bitcoin and gold.
The situation in the Ethereum and altcoin markets was also under the analysts' scrutiny. A noticeable recovery in Ethereum's parity with Bitcoin (ETH/BTC) in recent weeks was noted, as well as institutional investor interest in Ethereum, especially regarding passive income opportunities (staking). On the other hand, it was suggested that the general period of growth where all altcoins rose simultaneously, as in past cycles, might be over, and the market is entering a phase of divergence where only projects with real use cases and liquidity will survive.
Finally, analysts sharing their expectations regarding the Fed's interest rate policy noted that inflationary pressure and geopolitical risks have not completely subsided yet. They added that, alongside the actions of central banks in countries such as the UK, Japan, and Australia, the possibility of a U.S. interest rate hike cannot be completely ruled out.
*This is not investment advice.
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